A sum of money becomes ₹2,000 in 3 years and ₹2,400 in 4 years, at the certain rate of yearly compound interest in case of annual compounding. Find the yearly rate of compound interest.
Answer & explanation
Correct answer: option 1
3rd year 4th year
2000 2400
Difference = 400
R% = \(\frac{400 × 100}{2000}\) = 20%